The value of NYC cab "medallions" has tanked, and drivers are fleeing.

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Owners of New York City's taxi "medallions" filed a lawsuit (PDF) against city regulators today, saying their business has been devastated by the decision to allow companies like Uber to compete using "E-hail" services.

A medallion is required to operate a New York City yellow taxicab, the only type of vehicle allowed to accept passengers who hail cabs on the street. Until recently, those medallions could sell for over $1 million. Companies like White & Blue Group, one of the plaintiffs in the case, managed fleets of licensed taxicabs by leasing out the medallions.

According to the suit, White & Blue Group, which manages the largest fleet of leased taxicabs in New York, "has seen its monthly leasing income drop as much as 50% in the past year," and has been forced to idle as much as 20 percent of its fleet each day. The complaint was filed today and reported earlier by Reuters.

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"With companies like Uber operating in the marketplace free of regulatory burdens... licensed taxicab drivers have left the taxicab industry in droves, choosing instead to drive for Uber," states the complaint.

Companies like White & Blue "have been forced to repeatedly slash daily lease rates to compete," it continues. "Despite this, there are still not enough drivers willing to lease medallion taxicabs at any price, resulting in 'taxicab graveyards' scattered throughout New York City."

The suit states that NYC government misled them about the value of the medallions. It also states there's no reason to regulate medallion taxicabs, which can only charge a regulated metered fare, differently than "for hire vehicles" like black car services—or Uber—which can vary fares with market demand.

The complaint argues that the disparate regulation violates the Equal Protection clause of the 14th Amendment. In addition, it claims that the city has allowed Uber to "usurp and trespass upon the exclusive property rights of Credit Union Plaintiffs and Medallion Owner Plaintiffs," which constitutes an unconstitutional "taking" under the 5th Amendment.